India’s agriculture sector has seen an unprecedented change that benefits around 18.74 lakh farmers through recent dairy development initiatives.
The government showed its steadfast dedication by allocating an extra ₹1,000 crore to the National Programme for Dairy Development. This investment now totals ₹2,790 crore for 2021-2026 and has created more than 30,000 jobs while increasing daily milk procurement capacity by 100.95 lakh litres.
The sector’s growth looks promising with 10,000 new Dairy Cooperative Societies planned. These societies will create 3.2 lakh employment opportunities where women will hold 70% of positions. The agricultural reforms continue to alter the map through enhanced Kisan Credit Card limits and ambitious oilseed production targets. These reforms will reshape India’s agricultural future for 2025 and beyond.
National Programme for Dairy Development: Boosting India’s Dairy Industry
Image Source: Kisan Vedika - BigHaat
“The revised NPDD will give an impetus to the dairy sector by creating infrastructure for milk procurement, processing capacity, and ensuring better quality control. It is intended to help farmers gain better access to markets, to ensuring better pricing through value addition, and improve the efficiency of the supply chain, leading to higher incomes and greater rural development.” - Narendra Modi.
The National Programme for Dairy Development (NPDD) is the lifeblood of India’s agriculture sector. It transforms farming through better infrastructure and support for farmers. The government recently added ₹1,000 crore to the budget, bringing the total to ₹2,790 crore for 2021-2022 to 2025-2026.
Key Infrastructure Developments in the Dairy Sector
NPDD works through two detailed components that address crucial infrastructure needs. Component A improves basic dairy infrastructure like milk chilling plants, testing labs, and certification systems. The program has built up 51,777 village-level milk testing laboratories. It has also set up 5,123 bulk milk coolers that can handle 123.33 lakh liters. The program upgraded 169 labs with Fourier Transform Infrared (FTIR) milk analyzers. Now 232 dairy plants use advanced systems to detect adulterations.
Component B, “Dairying through Cooperatives (DTC),” helps develop dairy cooperatives in nine states. Villages get 90% grants for milk testing equipment. The program also offers a mix of loans and grants for bulk milk coolers and processing facilities.
Impact on Milk Procurement and Processing
India’s milk procurement capacity grew by 100.95 lakh liters per day which is a huge difference as compared to earlier years. The updated NPDD plans to create 10,000 new Dairy Cooperative Societies. These societies will focus on the North Eastern Region and remote areas. Modern procurement systems cut out middlemen and help rural milk producers connect with processing sectors. New electronic testing equipment at the village level checks milk quality. This creates a reliable network that works well for both producers and consumers. The program uses transparent milk collection systems that build trust in the supply chain.
Benefits for Dairy Farmers
NPDD has changed the lives of 18.74 lakh farmers across India. It created over 30,000 jobs and plans to add 3.2 lakh more. Women make up 70% of the dairy workforce and get most of these benefits.
Farmers get specialized training to build their skills. Dairy cooperatives backed by NPDD create lasting opportunities for millions of smallholder milk producers nationwide.
Japan-India Cooperation in Dairy Development
The program also works with the Japan International Cooperation Agency (JICA) under Component B. This partnership covers nine states: Andhra Pradesh, Bihar, Madhya Pradesh, Punjab, Rajasthan, Telangana, Uttarakhand, Uttar Pradesh and West Bengal. The project runs from 2021-2022 to 2025-2026 and will continue until 2027-2028. It uses Japanese expertise to boost productivity.
Akiba Bokujo Holdings has joined forces with the Indian IT startup Stellapps to improve dairy production technology. Company officials say this team-up will bring Japanese dairy farming knowledge to small-scale Indian farmers. This could reduce child labour by making farms more efficient and helping them earn more.
The future looks promising for Indian agriculture. Green farming practices now cover 7.5 lakh hectares. Natural farming methods have proven more resilient during extreme weather, making climate adaptation easier. For 2025, expect these trends to evolve further, with a stronger emphasis on sustainability, technology and farmer welfare. Keep an eye on the Union Budget 2025 for specific announcements.